The Taiwan Monthly

ESG

TWSE launches New ESG Digital Platform to propel capital markets towards net zero sustainability

The Taiwan Stock Exchange Corporation (TWSE) will launch a brand new ESG digital platform on May 6 to enhance the ESG database for listed companies, aimed at improving the transparency of sustainability information disclosure. Given the increasing international emphasis on sustainability information, consistent and comparable ESG information has become a crucial factor in attracting investments and financing amid the multitude of international sustainability standards and frameworks currently available. To this end, the TWSE has introduced a new version of the ESG digital platform with a user-friendly reporting interface to assist listed companies in efficiently disclosing ESG-related information and data in a uniform format, providing a reference for market participants’ investment decisions and corporate sustainability transformations.

 

The new ESG digital platform covers “Corporate Environmental, Social, and Governance (ESG) Information,” “Sustainability Reports,” “Greenhouse Gas Emissions and Reductions,” and “Sustainable Economic Activities” for all listed companies, with the following details:

 

I.         In response to the accelerating development of ESG sustainability issues, listed companies’ disclosure of “Corporate Environmental, Social, and Governance (ESG) Information” to be submitted by the end of June this year (2024). It has been revised to incorporate content from annual reports and sustainability reports. Companies are encouraged to disclose key industry-specific sustainability indicators, expanding from the original 7 major topics to 20, and increasing the number of ESG indicators from 29 to 97, thereby enhancing overall market sustainability information transparency.

 

II.       Sustainability reports are crucial channels for companies to showcase their sustainable management achievements and governance performance. Current regulations require listed companies with a capital of NT$2 billion or more to complete reporting by the end of August each year, and starting in 2025, all listed companies will be required to prepare and submit sustainability reports. To enhance market services, the new ESG digital platform will not only consolidate listed companies’ ESG information but also advance to offer an ESG sustainability report production function in 2025, assisting companies in preparing these crucial reports.

 

III.     On greenhouse gas emissions and reductions, a phased approach is underway requiring listed companies to set carbon targets, strategies, and action plans - with companies capitalized at NT$10 billion or more, as well as steel and cement firms, mandated to disclose this information starting 2025. The new platform synchronously adds voluntary early disclosure capabilities in this area.

 

IV.     Aligning with Taiwan’s 2050 net-zero goal, the Financial Supervisory Commission in December 2022 announced “Reference Guidelines for Identifying Sustainable Economic Activities” to encourage financial institutions to fund sustainable economic endeavors, propelling corporate sustainability and decarbonization. Listed companies are advised to review their core economic activities against these guidelines. The TWSE’s revamped ESG platform will provide a questionnaire for all listed companies to voluntarily disclose sustainable economic activities, facilitating their sustainability transformation journeys.

 

Scheduled to go live on May 6, the new platform’s rollout will be supported by online video tutorials from the TWSE to assist listed companies with their reporting. When investors search for ESG information or sustainability reports submitted by listed companies from 2024 onward on the Market Observation Post System (MOPS), the system will automatically display them through the new user-friendly ESG digital platform with an optimized search interface and functionality. Queries for reporting data from 2023 and prior years will continue to be accessed through MOPS.

 

For further information, please contact Mr. Hsieh at 1295@twse.com.tw.